Monday, March 14, 2011
Who Knew Regulation Could Save You From Economic Stupidity?
One of Peon's projects is a look at two condominium conversion proposals and how regulation saved one complex from conversion, while another complex was converted--to the distress of all who bought there. I've found a couple of things already. First a lot of converted apartments are not sold to owner-occupiers, but to small investors, so it is not an opportunity for affordable homeownership. Second prices really plummeted, in most cases by at least 50%. Not about 50%. Not almost 50%. At least 50%. Third people who should have bailed in 2007 held on for an amazingly long time, as they watched units sell for less than half what they paid. It made me sad to see people's lives wrecked, and angry that our county government is so irresponsible that they let this happen to people.